Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas
13 October 2021
Prospex Energy PLC ('Prospex' or the 'Company')
Letter to Shareholders
Prospex Energy PLC, the AIM quoted investment company (AIM:PXEN) focused on European gas and power projects, announces that Mark Routh, Prospex's CEO, has written to all shareholders to re-confirm the Board's plans and vision for Prospex Energy.
His letter has been pasted below and can also be viewed on the Prospex Energy website at: https://bit.ly/3atY8dF.
Mark Routh commented:
To all Prospex Energy Shareholders.
I am writing to you all to re-confirm the Board's plans and vision for Prospex Energy which we believe will achieve the common aim of growing the Company and increasing value for all shareholders. Now that the requisitioned general meeting is behind us, we need to move forward at pace. As a Board we are determined to grow Prospex with an aim to become an operator focussing on development and production gas assets across
Forward-plan and strategy
Prospex is focused on upstream gas developments & production and electricity generation in
We intend to expand our portfolio, which includes our currently producing gas-to-power facility at El Romeral and our advanced stage gas interests, with further gas-to-power projects and other suitable energy projects.
The Company will target appraisal and development assets not exploration. We will be evaluating assets already in production for acquisition at fair market value. We are now underway with optimising the assets already in the portfolio.
Deal Activity
Prospex's current portfolio is a springboard for further growth opportunities. Organic growth is happening and new investments are being considered.
All our assets are onshore. We would however look at offshore gas projects but access to infrastructure for gas export is the key to securing economic returns. A technically led subsurface evaluation process will be central to delivering successful deals.
Investment and acquisition size will vary according to the available production linked financing. We will look to achieve optimum debt levels, common practice in this industry, in order to increase returns to shareholders with minimal risk.
After the general meeting, the Company has re-engaged with our debt financiers to provide appropriately leveraged financing that would limit the use of equity as far as possible and therefore result in less shareholder dilution.
The El Romeral gas to power station in southern
I shall also be re-engaging with the relevant local and national regulators and authorities on the status of the Tesorillo permit (with estimated 831 Bcf (gross) of unrisked prospective resource and in which Prospex has a 15% working interest) now that any leadership uncertainties at Prospex are behind us.
The forward plan remains the same, to drill a lost cost well on the concession with a view to converting prospective resources into proven reserves justified for development.
The Selva field in
Outlook
I will not repeat the comments made in my August letter to you all on ESG and the European Energy situation which are still valid. Actually, the situation has become even more serious and the outlook for companies such as Prospex has become even more positive.
The income stream from the current production at El Romeral over the past four months has exceeded all prior targets and predictions and will increase further after the current work programmes complete. This, together with our near-term production forecast from our existing and proposed increased share in the Selva field means that we remain well positioned to grow this company which should then be reflected in its valuation.
I look forward to your support in the coming months and I will continue to maintain an open and constructive dialogue with all shareholders.
Yours faithfully
Mark Routh
CEO Prospex Energy plc
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of
**ENDS**
For further information visit www.prospex.energy or contact the following:
Mark Routh |
Prospex Energy PLC |
Tel: +44 (0) 20 7236 1177 |
Rory Murphy |
Strand Hanson Limited
|
Tel: +44 (0) 20 7409 3494 |
Colin Rowbury |
Novum Securities Limited |
Tel: +44 (0) 20 7399 9427 |
Duncan Vasey |
Peterhouse Capital Limited |
Tel: +44 (0) 20 7220 9797 |
Susie Geliher |
St Brides Partners Ltd
|
Tel: +44 (0) 20 7236 1177 |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.